Donald Trump and Hilary Clinton will clash for the third and final time in the debates this week in the early hours of Thursday morning. There has been so much conflict over the last few months, with the focus of so much of the race about the dealings of the candidates rather than their policies. It seems impossible to think that the final debate will be anything but the final chance for major fireworks. The currency markets don’t appear to have been effected to heavily in the run up to the vote as the Federal reserve have taken most of the economic headlines.
Chairlady Janet Yellen and her Open Market Committee have been fraternising with the idea of an interest rate hike for the best part of a year. Yellen over the weekend suggested that the US could benefit from a high pressure economy, with the intention to increase inflation levels. There is still an expectation that the FED will hike rates in December, despite the winner of the election. However, if that was to happen it seems likely that there wouldn’t be further hikes.
The anticipated uncertainty surrounding the election hasn’t seemed to settle in just yet as the US Dollar continues to strengthen against Sterling. In my opinion there will be volatility in the final few days, although it seems unlikely Sterling will gain back most of the ground lost since the Referendum.